Insolvency and Bankruptcy Code will make it easy for a budding entrepreneur to start or exit from the start-up business, Commerce and Industry Minister Nirmala Sitharaman said here at the India Today Conclave.
The minister said the effort of the government is to “encourage startups” as they are the ones creating jobs.
“Insolvency and Bankruptcy Code, which is being planned, is going to make it easy to start as well as exit start-ups because if you are not doing well there shouldn’t be a taboo, there should not be a hitch. They should be able to get out faster,” she said.
She said the government has announced a comprehensive action plan for start-ups that includes tax holidays.
“India is the third largest start-up country, only after the US and the UK… thanks to the entrepreneurial skills of Indian youngsters,” Ms. Sitharaman added.
Insolvency and Bankruptcy Code, which seeks to provide an easy exit option for insolvent and sick companies, has been referred to a 30-member joint committee of Parliament.
She also said Niti Aayog will be setting up 70 incubation centres all over the country and those centres would be ranked in innovations and top 10 incubators would get Rs.10 crore incentive award.
Further talking about ‘jugaad’ and innovation, she said people think that India is known for jugaad and the country cannot do anything in terms of innovation.
“But no. It is jugaad in other parts of the world is recognised as disruptive technology using skills, which really became innovation and today India’s jugaad is the innovation that we are talking about,” she added.